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Did you know you can BANK on Life Insurance?

When most people think of life insurance, they think of it as a safety net for their loved ones in case they pass away unexpectedly. However, did you know that life insurance can also be a powerful tool for building wealth? Traditional whole life insurance policies that pay out dividends can be used to create your own bank or private reserve strategy. Unfortunately, this is a poorly understood facet of life insurance, and many people miss out on the opportunity to use it to their advantage.

You can use life insurance as a tool to build wealth and why it’s one of the best ways to create your own bank.

The first step to using life insurance as a tool to build wealth is to find a participating life insurance company. A participating company is one that pays out dividends on its policies, and there are only a few high-quality companies in operation today. You’ll want to choose a company with an A++ Superior rating such as A.M. Best, Fitch Rating AA+, Moody’s Investors Service Aa3, and Standard & Poor’s rating AA+. These ratings indicate that the company is financially stable and has a strong track record of paying out dividends to its policyholders.

For example, one of the many companies that Tri-Capital Financial works with, was founded in 1851 and has continued with a solid reputation for financial stability for over 150 years!

The dividend payments from a participating life insurance policy are tax-free and can be used to build a private reserve or bank. This is because whole life insurance policies accumulate cash value as you pay your premiums. This cash value can be accessed through policy loans or withdrawals, and you can use it to finance major purchases, such as a home or business, or to take advantage of investment opportunities. This is why whole life insurance policies are a powerful tool for creating your own bank.

Most people who have life insurance policies are also under-insured due to inflation. Inflation erodes the value of a life insurance policy over time, and the death benefit may not be enough to cover the expenses that your loved ones will face in the future. However, with a participating Whole Life Insurance policy, your cash value will continue to grow over time, and you can adjust the death benefit as needed to keep up with inflation. This means that you can be confident that your policy will provide a solid source of income for your loved ones even as the cost of living continues to rise.

Life insurance is a misunderstood tool when it comes to building wealth.

Whole life insurance policies that pay out dividends can be used to create your own bank or private reserve strategy. By choosing a participating life insurance company with a strong financial rating, you can be confident that your cash value will continue to grow over time, providing you with a source of funds that you can use to finance major purchases or investment opportunities.

Additionally, by adjusting your death benefit over time, you can ensure that your loved ones will have the financial support they need for years to come. So, if you’re interested in learning more about how to use life insurance to build wealth, reach out to LaRue Rocha a qualified financial professional at Tri-Capital Financial, who can help structure a plan that fits your specific needs.  He can be reached at 530-223-5555.

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